PERAN MODERASI KOMITE ESG PADA PENGARUH KINERJA KEBERLANJUTAN TERHADAP KINERJA PASAR PERUSAHAAN SEKTOR ENERGI DI INDONESIA

Abstract

This research was conducted because existing research has not found evidence that tests Environmental, Social, and Governance performance on market performance (Tobin's Q) which is moderated by the Environment, Social, and Governance committee in energy sector companies. Therefore, this research aims to test the moderating of the ESG committee on the influence of sustainability performance on the company's market performance. The research variables consist of the dependent variable as market performance, namely Tobin's Q, while the independent variable for sustainability performance is Environmental, Social and Governance performance. Next, the moderating variable is the Environment, Social, and Governance committee. We include the control variables firm size and firm age. Data collection was obtained from the Indonesian Stock Exchange, energy sector company websites, and the Center for Environment Social and Governance Studies, totaling 78 companies during 2014-2021. Next, using purposive sampling, we obtained 12 energy sector companies as samples. The analysis method was carried out using panel data regression by testing the Environmental, Social, and Governance performance variables against Tobin's Q without moderation and after being moderated by the Environmental, Social, and Governance committee with the control variables company size and age. The results of the research before being moderated by the ESG committee showed that Environmental, Social, and Governance performance had a positive and significant effect on market performance (Tobin's Q). Furthermore, after moderation, it showed that the Environment, Social, and Governance Committee strengthened the Total Environment, Social, and Governance performance positively and significantly towards market performance (Tobin's Q)